Question

Three partners share a business. Max owns 3/8 , Sherry owns 2/5 , and Duane owns the rest. If the profits this year are $450,000, how much does each partner receive (in $)?

Answer 1

Answer:

Max $ 168,750, Sherry $ 180,000 Duane $ 101,250

Explanation:

The total profit is considered as 100 %

Max share is 3/8 or expressed as a %:        3/8*100 = 37.5 %

Sherry share is 2/5 or expressed as a %     2/5*100 = 40 %

Duane share is 100 % - 37.5 % (Max share) - 40 % (Sherry share) = 22.5 %

The allocation fo profits of % 450,000 is distributed as follows:

Max         $ 450,000 * 37.5 % =  $ 168,750

Sherry     $ 450,000 * 40 %    = $ 180,000

Duane     $ 450,000 * 22.5 %  = $ 101,250